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Investor Presentation

November 2019

DisclaimerThis presentation contains statements that constitute “forward-looking statements” under the Private Securities Litigation Reform Act of 1995. All statements other than

statements of historical facts contained in this presentation, including statements regarding our short-term and long-term growth strategies, efforts to develop and

commercialize our products, future operations, future financial position, future capacity, future revenue, future Adjusted EBITDA, projected costs, prospects, plans,

objectives of management and expected market growth are forward-looking statements. These statements involve known and unknown risks, uncertainties and other

important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements

expressed or implied by the forward-looking statements. The words “anticipate,” “believe,” “could,” “estimate,” “expect,” “guidance,” “intend,” “may,” “plan,”

“potential,” “predict,” “project,” “should,” “target,” “will,” “would,” “outlook” and similar expressions are intended to identify forward-looking statements, although not

all forward-looking statements contain these identifying words.

These forward-looking statements are only predictions and we may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements,

so you should not rely on our forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in the

forward-looking statements we make. We have based these forward-looking statements largely on our current expectations and projections about future events and

trends that we believe may affect our business, financial condition and operating results.

The information in this presentation is current as of October 31, 2019 and speaks only as of such date. We expressly disclaim any obligation to release any updates or

revisions to any information presented herein, including any forward-looking statements, to reflect any change in our expectations or projections or any changes in

events, conditions or circumstances on which any such information or statements are based for any reason, except as required by law, even as new information becomes

available. All information and forward-looking statements in this presentation are qualified in their entirety by this cautionary statement.

In addition to results presented in accordance with U.S. GAAP, this presentation and related tables include Adjusted EBITDA, a non-GAAP financial measure. We have

provided a reconciliation of this measure to net income (loss), the most directly comparable GAAP measure, which is available in “Reconciliations” starting on slide 27. We

use Adjusted EBITDA as a measure of operating performance, because it does not include the impact of items that we do not consider indicative of our core operating

performance, for planning purposes, including the preparation of our annual operating budget, to allocate resources, to enhance the financial performance of our

business, and as a performance measure under our bonus plan. We also believe that the presentation of Adjusted EBITDA provides useful information to investors with

respect to our results of operations and in assessing the performance and value of our business. Although we believe this non-GAAP financial measure enhances

investors’ understanding of our business and performance, this non-GAAP financial measure should not be considered an alternative to or substitute for the

accompanying GAAP financial measures. The discussion of non-GAAP financial measures set forth in our Annual Report on Form 10-K for the year ended December 31,

2018 and filed with the SEC on March 8, 2019, as amended by the discussion of non-GAAP financial measures set forth in our Quarterly Report on Form 10-Q for the

quarterly period ended September 30, 2019 and filed with the SEC on October 31, 2019, pursuant to the Securities Exchange Act of 1934, as amended, are incorporated

by reference into this presentation and should be read in their entirety alongside this presentation.

The risk factors set forth in our Annual Report on Form 10-K for the year ended December 31, 2018 and filed with the SEC on March 8, 2019 pursuant to the Securities

Exchange Act of 1934, as amended, are incorporated by reference into this presentation and should be read in their entirety alongside this presentation.

© 2019 Aspen Aerogels, Inc.2

DisclaimerThis presentation contains market data and industry forecasts that were obtained from industry publications, third party market research and publicly available

information. These publications generally state that the information contained therein has been obtained from sources believed to be reliable, but the accuracy and

completeness of such information is not guaranteed. This presentation also contains estimates and other statistical data made by independent parties and by us relating

to market size and growth and other data about our industry. We obtained the industry and market data in this presentation from our own research as well as from

industry and general publications, surveys and studies conducted by third parties, some of which may not be publicly available. For example, this presentation includes

statistical data extracted from an off-the-shelf market research report (World Insulation - #3435) by The Freedonia Group, an independent international market research

firm, and a separate custom market research report by Freedonia Custom Research, Inc., a wholly-owned subsidiary of The Freedonia Group, or Freedonia, which was

commissioned by us and was issued in January 2017. Such data may be outdated and involves a number of assumptions and limitations and contains projections and

estimates of the future performance of the industries in which we operate that are subject to a high degree of uncertainty. We caution you not to give undue weight to

such projections, assumptions and estimates.

The Freedonia Custom Research, Inc. Report, or the Freedonia Report, represents data, research opinion or viewpoints developed independently on our behalf and does

not constitute a specific guide to action. In preparing the Freedonia Report, Freedonia used various sources, including publicly available third party financial statements;

government statistical reports; press releases; industry magazines; and interviews with manufacturers of related products (including us), manufacturers of competitive

products, distributors of related products and government and trade associations. The Freedonia Report speaks as of its final publication date (and not as of the date of

this presentation).

3© 2019 Aspen Aerogels, Inc.

EXPERIENCED LEADERSHIP TEAM

4

• President, CEO and member of Board

of Aspen Aerogels since 2001

• Prior to 2001, worked in the U.S. and

abroad in a range of senior operating

roles for Cabot Corporation

• Graduate of Harvard College and

earned an MBA from Harvard Business

School

Donald R. YoungPresident & CEO

• Has served as CFO since 2006

• More than 10 years of service as a SVP

of New England Business Service in

senior financial and operating roles

• Earned a BA in Economics from

Middlebury College and an MBA from

the Wharton School of the University of

Pennsylvania

John F. FairbanksVice President, CFO & Treasurer

© 2019 Aspen Aerogels, Inc.

COMPANY TIMELINE


NASA Contract -

Flexible Aerogel

Blanket

Aspen Aerogels

Founded

2001

First Large Scale

Subsea Project

2004

East

Providence

Manufacturing

Facility

2007

2008Launched

Pyrogel / Cryogel –

Energy Infrastructure

1999

Aspen Aerogels

IPO

2014

2015

BASF

JDA & Supply

Agreement -

Building

Materials

2016

Began

East Providence

Capacity Expansion

Awarded

$35M - $40M

PTT LNG

Project

2019

$120M+

Revenue

2018

44%

34%

19%

3%

USA & Canada

Asia Pacific

EMEA

Latin America

GeographyTargeted Energy End Markets

2018 Product Revenue by Region

First market: large-scale energy infrastructure facilities

$3.1 billion global energy infrastructure insulation market

Over $900 million installed base and poised for continued penetration

Second market: building materials

High performance & non-combustible insulation – delivering energy efficiency & building safety

Partnered approach with BASF – technical, commercial & financial support

Leveraging Aerogel Technology Platform (ATP): potential value in diverse markets

Battery materials – carbon aerogels provide unique structure enabling greater energy density

Dedicated team developing a portfolio of opportunities

6

REFINERIES PETROCHEMICAL

POWER

LNG & GAS

OFFSHOREOIL SANDS


AN AEROGEL TECHNOLOGY COMPANYDESIGN, DEVELOP AND MANUFACTURE INNOVATIVE, HIGH-PERFORMANCE AEROGEL PRODUCTS

END MARKETS AND PRODUCTS

7

Refining

Used by 24 of

the world’s 25

largest refining

companies

Petro-

chemical

Installed by 20

of the top 20

petrochemical

companies

LNG

Preferred by

LNG & FLNG

for space

saving design

Power

Maximum

efficiency for

power

generation

Offshore

Thin and

durable for

pipe-in-pipe

applications

Other

Building

Materials

District Energy

Transportation

Apparel

Hot Process Applications Cold Process Applications Ambient & LowTemperature Applications


STRONG VALUE PROPOSITION IN LNG


UNIQUE TECHNOLOGY

9

Amorphous silica solids

Characterized by extreme properties

Lowest density solid, ~97% air

Lowest thermal conductivity

Leading thermal performance of any widely used insulation product

Reduces corrosion under insulation

Compact design and faster installation

High durability and fire protection

Industrially robust

Unique product form

Proprietary manufacturing process

Patent-protected: Over 200 patents issued or pending, owned or co-owned worldwide

Aerogel MaterialsOur Breakthrough

Technology

Advantages vs. Traditional Insulation

Our Aerogel Products


GLOBAL DISTRIBUTION NETWORK AND INSTALLED BASE

10

Distributors

Contractors

OEMs

Installed Base

Installed in more than

50 countries worldwide

48 sales & marketing

employees and 70 distributors


INDUSTRY-LEADING END USERS


STRATEGY

12

AEROGEL TECHNOLOGY

PLATFORM (ATP)

CORE MARKETS

ADJACENT MARKETS

NEW MARKETS

Invest in and drive innovation

Penetrate and gain global market share

Leverage existing products and channels to

open additional markets

Commercialize Aerogel Enhanced Products

through strategic partnerships

SUBSEA REFINERIES PETROCHEMICAL

LNG & GAS DISTRICT ENERGY POWER


ELEMENTS OF STRATEGY

13

GENERATE CASH FROM

CORE & ADJACENT

MARKETS

• Enhance process technology and drive to profitability

• Penetrate global energy infrastructure market to fill EP plant

• Generate cash to invest in new business development (NBD)

• Nourish core and adjacent market penetration to build cash generator

• Asymmetrical targeting of breakout opportunities

• Leader in thermal with valuable option on breakout opportunities


BREAKOUT VALUE

THROUGH NBD

• Identify and prioritize big opportunities to leverage ATP

• Attract world class expertise and partners

• Commercialize innovation to drive value

MAXIMIZE

LONG-TERM VALUE

TECHNOLOGY TO SOLVE IMPORTANT PROBLEMS


Electrification of Vehicles

Growing Natural Gas Surplus

Sustainability & Regulation

Penetration of Renewables

Water Scarcity

Macro Trends~$100 Million R&D

• Deep Technical Expertise –

Product & Process

• 200+ Patents – Granted,

Pending & Defended

• Invaluable Experience – From

Bench Scale to Full Industrial

Scale

• Full Scale Pilot Plant for Next

Generation Products/Process

• Collaborative Research

Expertise – Corporate,

Government, University

Intensifying Needs

• Robust Thermal

Management Solutions

• Cryogenic & LNG

Solutions

• Advanced Energy Storage

Technologies

• Better, Smaller Sensors

and Power Sources

• Efficient Water Filtration

and Reclamation

Advancements

PARTNERING A CORE COMPETENCE


Speed and Agility

Innovation

Aerogel Technology

Platform

Track Record

Target Partner

CharacteristicsAspen’s Contribution

Technology Leader

Applications Expertise

Financial Resources

Established Channels

Megatrends and High Profile Catalysts

Rap

id U

rban

izat

ion

Bu

ild

ing

Saf

ety

MARKET OPPORTUNITY:

Replace high-performance combustible insulation where application goal is to:

• Maximize internal living or work space

• Minimize thermal bridging

• Achieve superior thermal resistance

TARGET PARTNER PROFILE:

Well positioned to rapidly develop a highly fragmented, global market with:

• Existing channels, strong local market

knowledge, and trusted customer relationships

• Financial resources to support high growth opportunities

Opportunity & Partner Profile

Cli

mat

e C

han

ge • Buildings are responsible for nearly 40%

of global energy consumption

• Efforts to capture energy savings from buildings are driving new regulations

• >50% of the global population live in

urban areas

• Urban population growing rapidly

• Recent high profile fires are driving

restrictions on combustible insulation

• Insurers are supporting use of non-combustible materials

BUILDING MATERIALS OPPORTUNITY


BASF PARTNERSHIP


COMMERCIALElite partner with channels in new, large addressable market

TECHNICALNext generation products enabled by Aspen’s ATP

FINANCIALProduct revenue, prepayments and licensing opportunities

ASPEN BATTERY


OPPORTUNITY

• $100B energy storage

opportunity

• Majority is Li-ion for EVs

ASPEN VALUE DRIVERS

• Carbon aerogels platform

• Anode and cathode

• Scalable and low cost

EMERGING PARTNERSHIPS

• Partnered approach -- battery

and EV leaders

• Technical, commercial &

financial support

INDUSTRY ROADMAPS

• Improved cost/performance

• Demands innovation in key

materials

CONSUMER IMPACT

• Stabilizes higher energy

density battery materials

• Maximizes drive range

STATUS

• Leveraging 10 years of

carbon aerogel R&D

• Expanding IP portfolio

• Materials being optimized

EP20 INITIATIVE AND FINANCIAL POTENTIAL

19

Core & Adjacent

Markets

$102 $168 - $180 $184 - $198

NBD

EP20 Initiative

• Expand East Providence manufacturing facility capacity by 20%

• Increase annual capacity from 50 million s.f. in 2018 to 60 million s.f. by the end of 2020

• Phased deployment of enhanced chemical and process technologies

Penetrate Energy Market, Generate Cash

Invest For Breakout Value

Breakout

Value

New Business

Development

Product Revenue

EP20

Potential

2019

Capacity

2018

Actual*Millions

Adjusted EBITDA $(11) $22 - $27 $28 - $35

* Values rounded to nearest million.


2019 PERFORMANCE TARGETS


Project work at least 33% of total revenueProject Revenue

20% plus growth to $126 million or moreTotal Revenue

Adjusted EBITDA Positive Adjusted EBITDA for full year

New Markets Expanded relationship with BASF

New Markets Leverage Aerogel Technology Platform with new elite partner

Resources Optimize cost structure and strengthen balance sheet

Drive to Profitability Set stage for strong profit growth in 2020

STRONG NINE MONTHS 2019 PERFORMANCE

BASFSecured 2nd $5million prepayment for next gen product.

PTT$38 million – 2019 & 2020 delivery.

SVB RENEWALStrengthens balance sheet.

IP WIN IN EUROPEResounding victory against Chinese aerogel infringers.

BASF PREPAYMENTSecured 2nd $5 million prepayment for next gen product

AWARDED PTT LNG PROJECT

$35 to $40 million with delivery between 2019 & 2020

SVB EXTENSION

Strengthened financial resources

IP WIN IN EUROPE

Resounding victory against Chinese aerogel infringers

SOLID 2019 PERFORMANCE

35% revenue growth driving improved profitability

21

Financial Overview

22

23

For the Year Ended December 31,

See slide 27 herein for a reconciliation of net loss, the most directly comparable GAAP measure, to Adjusted EBITDA for the periods presented.

($ in thousands) 2014 2015 2016 2017 2018

102,399$ 122,518$ 117,738$ 111,631$ 104,361$

85,319 97,870 94,427 92,960 91,692

17,080 24,648 23,311 18,671 12,669

Operating Expenses 33,123 30,883 34,531 37,807 46,585

(16,043) (6,235) (11,220) (19,136) (33,916)

Other Expense, Net (50,281) (182) (803) (185) (524)

Net Loss (66,324) (6,417) (12,023) (19,321) (34,440)

Adjusted EBITDA Add-backs 69,364 15,482 15,969 16,029 22,969

3,040$ 9,065$ 3,946$ (3,292)$ (11,471)$

Revenue Growth 19 % 20 % (4)% (5)% (7)%

Gross Margin 17 % 20 % 20 % 17 % 12 %

Adjusted EBITDA Margin 3 % 7 % 3 % (3)% (11)%

Adjusted EBITDA

Operating Loss

Cost of Revenue

Gross Profit

Total Revenue

ANNUAL REVENUE & ADJUSTED EBITDAUNFAVORABLE TRENDS DUE TO PROJECT DECLINES & MATERIAL COST INCREASES


24

($ in thousands)

92,870$ 68,682$ 24,188$ 35 %

77,896 61,599 16,297 26 %

14,974 7,083 7,891 111 %

Operating Expenses 28,303 27,057 1,246 5 %

(13,329) (19,974) 6,645 33 %

(280) (358) 78 22 %

Net Loss (13,609) (20,332) 6,723 33 %

Adjusted EBITDA Add-backs 10,816 12,031 (1,215) (10)%

(2,793)$ (8,301)$ 5,508$ 66 %

Gross Margin 16 % 10 %

Adjusted EBITDA Margin (3)% (12)%

Total Revenue

Adjusted EBITDA

Operating Loss

Cost of Revenue

Gross Profit

Interest Expense, Net

Nine Months Ended Change

9/30/19 9/30/18 $ %


2019 PERFORMANCESTRONG REVENUE GROWTH AND IMPROVING PROFITABILITY


25


2019 FINANCIAL GUIDANCESTRONG REVENUE GROWTH LEADING TO IMPROVED PERFORMANCE


2019 Outlook2018

(in thousands, except EPS) Actual Low High

104,361$ 130,000$ 134,000$

Net Loss (34,440)$ (15,500)$ (14,500)$

(11,471)$ (1,000)$ 0$

EPS (1.45)$ (0.64)$ (0.60)$

Shares Outstanding 23,739 24,100 24,100

Depreciation & Amortization 10,787$ 10,200$ 10,200$

Impairment of Construction In Process 7,356$ 0$ 0$

Stock Based Compensation 4,302$ 3,900$ 3,900$

Interest Expense, Net 524$ 400$ 400$

Gross Margin 12% ~18%

Adjusted EBITDA

Total Revenue

Appendices

26

RECONCILIATION

27

Note: The table above presents a reconciliation of net loss, the most directly comparable GAAP measure, to Adjusted EBITDA for the periods presented.

Year Ended December 31($ in thousands)

2014 2015 2016 2017 2018

Net loss (66,324)$ (6,417)$ (12,023)$ (19,321)$ (34,440)$

Depreciation and amortization 10,183 9,887 9,853 10,753 10,787

Stock-based compensation 8,781 5,413 5,313 5,091 4,302

Interest expense, net 50,281 182 147 185 524

Impairment of construction in process – – – – 7,356

Postponed financing costs – – 656 – –

Loss on disposal of assets 119 – – – –

Adjusted EBITDA 3,040$ 9,065$ 3,946$ (3,292)$ (11,471)$


RECONCILIATION

28

($ in thousands) 9/30/19 9/30/18

Net loss (13,609)$ (20,332)$

Depreciation and amortization 7,651 8,259

Stock-based compensation 2,885 3,414

Interest expense net 280 358

Adjusted EBITDA (2,793)$ (8,301)$

For the Nine Months Ended



RECONCILIATION

29

($ in thousands)

Actual Low High

Net loss (34,440)$ (15,500)$ (14,500)$

Depreciation & amortization 10,787 10,200 10,200

Stock-based compensation 4,302 3,900 3,900

Interest expense, net 524 400 400

Impairment of construction in process 7,356 0 0

Adjusted EBITDA (11,471)$ (1,000)$ 0$



2019 Outlook2018

Investor Presentation

November 2019

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